Review of the recession and how to end it
March 28, 2009 at 15:03 PM EDT
[Skip to the end] The problem is suboptimal output and employment which is evidence of a lack of aggregate demand. Less important what caused the drop in aggregate demand The end of the subprime expansion in 2006 reduced the demand for housing The wind down of the one time Q2 2008 fiscal adjustment (Q2 2008 GDP was up 2.8%) The [...]